The Oil Story Everyone's Telling You Is Wrong. Here's What's Actually Driving Prices at the Pump.
Tight refining capacity is keeping gasoline and diesel prices elevated.
Overview
Last week, gasoline was clocking in at about $4.40 a gallon nationally. Diesel came in at around $6.37, up from just $3.70 a year ago. Yet West Texas Intermediate crude oil had fallen to roughly $90 a barrel after reaching $119 in March.
Now, if crude oil were the whole story, those numbers wouldn't make much sense. But the bigger problem right now isn't necessarily finding oil. It's turning that oil into gasoline, diesel, and jet fuel -- and certain companies are benefiting most.
Details
Crude oil doesn't go directly from an oil well into your gas tank. It first has to be processed through a refinery, where it's converted into gasoline, diesel, jet fuel, and other products. And right now, global refining capacity is tight.
Source
Originally published at www.fool.com.